The state converts debt into equity and acquires 99.9% of Metro do Porto

The construction of the do Porto metro network, in particular the first phase, was financed using bank loans.

A source from the company explains, “Despite the large investment projects underway and already benefiting from non-refundable financing, the truth is that historical debt has had a negative impact on the accounts through the interest charged and the resulting effects on the negative net worth, in Case of non-compliance with the Commercial Companies Law.

Over the years, the state, through the General Directorate of the Treasury, has injected funds to pay the debt service. In other words, he no longer owes the bank to the General Directorate of Treasury.

However, maintaining this debt puts the company’s access to community funds into question due to “non-compliance with the ratios stipulated in EU Regulation No. 651/2014”.

The debt was cleaned up through two capital raisings, Jornal de Negocios reported on Thursday. This change has already been formalized through unanimous written resolutions by all shareholders. Thus the state received 99.9%, the Porto metropolitan area 0.07% and the STCP 0.03%.

The Metro administration consists of seven members: the president, Thiago Braga, who is chosen by agreement between the mayors and the government. Two state-appointed administrators and two non-executives, in this case mayors Marco Martins and Silva Thiago, appointed by the Porto Metropolitan District. STCP is appointing a non-executive director, who is currently President Cristina Pimentel.